GMS 400 Lecture Notes - Lecture 8: Country Risk, African Development Bank, Foreign Exchange Controls
13 Apr 2017
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Document Summary
A confirmed letter of credit: confirmed lc - confirmed by the exporter"s bank (the exporter"s bank agrees to pay should the foreign bank fail to do so) May be a new government policy or alteration of exchange controls in the buying country. Foreign bank may run short of hard current: every stage of confirmation costs more. Export development canada (edc: provides financing or loan guarantees for major capital projects in foreign markets. Provides buyer financing for capital equipment and services. Lends money to the importer of cdn goods but actually pays the. Cdn exporter directly and the foreign purchaser pays back edc. Cdn exporter directly and the foreign purchaser pays back edc: provides insurance for canadian exports. Foreign receivables insurance (not available for your domestic bank) - will guarantee up to 90% of your receivables: provides foreign investment insurance. Political risk protection for new canadian investments abroad.
